Financial adviser says living wage is impacted by inflation

BIRMINGHAM, Ala. (WBRC) – Inflation squeezes a lot of our wallets and although we’re all spending more money, most of us aren’t getting more money.

MIT has created a living wage calculator which you can use to compare your current hourly wage with the poverty and living wage. Whether there is one or two people working in a household, or even zero to three children, the numbers change.

On the website, the calculator is described as follows: “The living wage shown is the hourly rate that an individual in a household must earn to support themselves and their family. The assumption is that the only supplier works full time (2080 hours per year). The tool provides information for individuals and households with one or two working adults and zero to three children. For households with two working adults, all values ​​are per working adult, single or in a family, unless otherwise specified. »

In Jefferson County, for an adult with no children, a stable living wage is said to be $17.40 an hour. For an adult with three children, it goes from $30 to $50.11 per hour.

Since the data is updated every year, rising inflation may not be included in the figures.

Marshall Clay, Senior Advisor to The Welch Group, says that when inflation is prevalent as it is now, living wages can be seriously affected. He says that even though you get a normal raise every year, it doesn’t keep up with price inflation.

According to Clay, nationally, the last July inflation percentage was 8.5%, but wages and salaries rose only 5.2%.

“Even if you nominally receive a 5.2% raise at your particular job, you still feel like you’re falling behind because those everyday goods and services – food, gas, everything else – are increasing at a higher rate. what your salary is,” Clay said. He says that’s why people across the country are feeling bad right now.

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Michael A. Bynum